Infrastructure Development: Driving Sustainable Growth in Africa
Introduction to the Development Bank of Southern Africa (DBSA) and its role in preparing, financing, and implementing infrastructure projects in Africa. DBSA focuses on advancing development impact by expanding access to development finance and integrating sustainable development solutions to support economic growth, regional integration, and the promotion of sustainable resource use. The integrated approach to infrastructure development includes planning, preparing, financing, building, and maintaining projects across sectors like education, health, and housing, with a focus on private and public clients, municipalities, PPPs, SOEs, and sovereigns.
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THE ROLE OF GOVERNMENTS? Deliver value for the citizens 2
INTRODUCTION TO DBSA Preparing, financing and implementing infrastructure projects in Africa Total assets R100bn (US$6bn) Equity R35bn (US$2.6bn) Founded 1983 DBSA Act 1997 Owned 100% by SA Government Externally rated Well governed Globally accredited Unqualified audits DBSA foreign currency rating is Baa3 (Moody s) Global Environmental Facility A+ rating from AADFI PSGRS Green Climate Fund EU 6-pillar 3
INTRODUCTION Preparing, financing and implementing infrastructure projects in sub-Saharan Africa Mission Strategic objectives Advance development impact in Africa by expanding access to development finance and effectively integrating and implementing sustainable development solutions to: Sustained growth in developmental impact aggressively grow businesses to maximise developmental impact Integrated infrastructure solutions provider across value chain partner of choice Improve quality of life through the development of social infrastructure Financial sustainability maintain profitability and operational efficiency to enable growth in equity and fund developmental activities Support economic growth through investment in economic infrastructure Support regional integration Sustainability innovations Promote sustainable use of scarce resources 4
INTEGRATED APPROACH TO INFRASTRUCTURE DEVELOPMENT 1. Plan 2. Prepare 3. Finance 4. Build 5. Maintain Project identification Long-term senior and subordinated debt Managing design and construction of projects in education, health and housing sectors Supporting maintenance/ improvement of social infrastructure projects Municipal assessments Feasibility assessments Bulk infrastructure plans Corporate and project finance Technical assistance Infrastructure planning advice Mezzanine finance Programme development Project management support Structured financing solutions Project preparation funds Clients Private Public Municipalities PPPs SOEs Private sector Sovereigns 5
VALUE CHAIN FINANCING Development impact in areas of social and economic infrastructure Instruments Description Bridging finance (BF) to assist with expediting grant funded projects or bridging proceeds of long-term loans. To be repaid within the Bridging Finance same financial year Conditional grants front loading bridging of conditional grants over the MTREF (2-3 years) On-balance sheet debt vanilla loans and bonds up to 30 years Project (cash-flows backed) Finance Sculpted and structured loans that match the expected project cash flows Long-term Facilities Blended loans (tenor and interest rates) through: International DFI credit lines, o Mobilising third party sector specific funds (e.g., GCF and GEF) o Credit guarantees and first loss instruments Credit Enhancement Securitisation Structure Subordinated (mezzanine) debt instruments Catalysing of private sector (commercial banks and asset managers) funds by allowing private sector to take the shorter end with the DBSA taking the tail end of the deal 6
"The care for human life and happiness, and not their destruction, is the first and only object of good government" Thomas Jefferson
